SFO – Jean-Daniel Lainé a été acquitté à l’issue d’un 2ème procès à la Southwark Crown Court de Londres. Jean-Daniel Lainé was acquitted at the end of a retrial at the Southwark Crown Court in London.

On 28 November 2018, Jean-Daniel Lainé was acquitted – at the unanimity of the 12 jurors – at the Southwark Crown Court in London of a charge in a linked investigation into alleged corruption relating to a Budapest Metro rolling stock contract and consequently Alstom Network UK has also been found not-guilty. This was the result of a retrial from the Serious Fraud Office on this case, as the jury was unable to decide at the end of the first trial held in 2017.

Due to their wish to achieve a corporate conviction against Alstom, the SFO misunderstood and misrepresented my role within the company Alstom Network UK and consequently put me through four difficult years having to prove my innocence.

As director of Alstom Network UK, I was considered as representing the directing mind and will of the company. The pressure against me was then immense as the Notes on the Law given by the Judge to the 12 jurors said: “As far as Alstom Network UK is concerned you can only consider a verdict for the company once you have reached a verdict in respect of Jean-Daniel Lainé. A company will have imputed to it the acts and state of mind of those of its directors who represent its directing mind and will. If your verdict in relation to Jean-Daniel Lainé is Not Guilty your verdict in relation to Alstom Network UK must be Not Guilty”.

Further, by prosecuting a Chief Compliance Officer, often cited as the first line of defence against corporate corruption, the SFO have sent a message to the Ethics and Compliance community that is counterproductive and damaging to their efforts to keep business free from corruption.

Eric Albert

Extract from the Financial Times dated December 19, 2018

The final case involved allegations that three individuals conspired to bribe public officials in Hungary so that Alstom Network would secure a €229m contract for another subsidiary to supply rolling stock to the Budapest metro system. Three individuals — Jean-Daniel Lainé, Michael Anderson, and Terence Watson — were acquitted this year after a retrial at Southwark Crown Court. The company was also cleared in the Budapest case.

Barney Thompson

Extract from Global Investigations Review dated 19 December 2018

Under phase three, the SFO accused former Alstom executives Michael Anderson, Terence Watson and Jean-Daniel Lainé and Alstom Network UK of conspiracy to corrupt Hungarian officials contrary to section 1 of the Criminal Law Act 1977.

The SFO said that Anderson, a former business development manager at Alstom Transport in Paris, Watson, Alstom Network UK’s former senior vice president for Europe and Central Asia, and Lainé, Alstom Network UK’s former senior vice president for ethics and compliance, conspired with Alstom Network UK to give corrupt payments to public officials in Hungary to secure contracts for the Budapest Metro System. The SFO alleged that in 2006, payments were made to local consultants in Hungary to secure a €229 million contract.

Anderson, Watson, Lainé and Alstom Network UK were first tried in May 2018. However, a jury at Southwark Crown Court was unable to reach a verdict and the parties were retried in September. Alstom Network UK, Watson and Lainé were acquitted of a charge of conspiracy to corrupt on 28 November 2018. Anderson was acquitted of the same charge on 29 November 2018.

Lainé said in an emailed statement: “Due to its wish to achieve a corporate conviction against Alstom, the SFO misunderstood and misrepresented my role within the company and consequently put me through four difficult years of having to prove my innocence.”

His lawyer, Christopher David, counsel at WilmerHale in London, said: “The Alstom trials have produced a mixed set of results for the SFO.” He added: “Whilst some trials have resulted in convictions, the acquittal of a number of senior executives calls into question the SFO’s approach to the prosecution of corporate crime.”

Waithera Junghae

Extract from Wall Street Journal dated 20 December 2018

Alstom Network UK Ltd was acquitted along with three other executives for their roles in alleged corruption over the supply of trains to the Budapest Metro system.

Those acquitted in the Budapest case included Terence Stuart Watson, a former Alstom managing director in the U.K., and Jean-Daniel Lainé, who was a senior vice president of ethics and compliance at Alstom.

Samuel Rubenfeld and Nina Trentmann

WilmerHale – David Christopher

“Christopher David successfully represented the former Chief Compliance Officer of Alstom, Jean-Daniel Lainé, in an SFO prosecution when he was acquitted in November 2018 of conspiracy to corrupt in relation to Alstom’s role in the Budapest Metro Project.”

Michael Bowes QC

“It was the SFO’s case that: Terence Watson; Michael Anderson, a former Business Development Manager at Alstom Transport in Paris; and Jean-Daniel Lainé, Alstom Network UK’s former Senior Vice President for Ethics and Compliance, conspired with Alstom Network UK to make corrupt payments to public officials in Hungary in order to secure contracts for the Budapest Metro System. The SFO alleged that in 2006, payments were made to local consultants in Hungary to secure a €229 million contract.

Mr Anderson, Mr Watson, Mr Lainé and Alstom Network UK were first tried in May 2017. However, a jury at Southwark Crown Court was unable to reach a verdict and the parties were retried in September 2018. Mr Anderson, Mr Watson, Mr Lainé and Alstom Network UK, were all acquitted of the charge of conspiracy to corrupt.”

January 2006

The Representation & Compliance Department is renamed Ethics & Compliance with an enlarged scope in line with Alstom’s will to strengthen its policy in terms of integrity beyond its obligations to comply with national and international laws. Jean-Daniel Lainé is appointed SVP Ethics & Compliance as from 1st January 2006.

March 2006

The e-learning module on Competition Law is launched.

April 2006

Reinforcement of the Application Form for the appointment of consultants in relation to the validation and the delivery of proofs of services.

January 2007

The Ethics & Compliance department issues new detailed “Rules, Procedures and Guidelines for the Selection, Use and Payment of Agents” applicable to the all-operational Sectors.

April 2007

Distribution to all employees of 80,000 copies of an updated version of the Code of Ethics entitled “Our identity, our values, our code of ethics” printed in 17 languages.

Implementation of an Alert Procedure available to any employee who may have reasons to believe that corruption, competition, securities of accounting laws or rules are not being respected.

June 2007

The Ethics & Compliance department appoints an external company to carry out external report on consultants and representatives to further strengthen its Due Diligence process.

January 2008

The “Pre-Appraisal” process is launched. The process requires a meeting with Ethics & Compliance and the representative of the sector concerned to discuss the necessity to appoint a consultant, the justification and a review of the situation, before any commitment is made under the form of a cross-examination. Another initiative is also launched with the “Application Form” which must be systematically completed by the sectors.

March 2008

As part of a continuing process of self-assessment, an outside lawyer with extensive practical compliance experience is appointed to review the Ethics & Compliance organisation,

A certification process of our Rules and Procedures, by ETHIC Intelligence, a company working with an international group of experts, is initiated.

May 2008

Decision to review the Ethics & Compliance organisation in order to avoid any possible internal conflict of interests (the Sector Compliance Officers report to the SVP Ethics & Compliance with a functional reporting to the sector General Counsel) and to reinforce the team by the recruitment of new Compliance Officers.

June 2008

Launch of an e-learning module on Prevention of Corruption.

February 2009

Appointment of the Power Compliance Officer, a French military Officer.

March 2009

The certification by ETHIC Intelligence of the rules and procedures for dealing with sales consultants is obtained after an audit by SGS conducted between September 2008 and March 2009.

Overall both the quality of our compliance policy and the quality of its implementation have been rated as “exemplary” and corresponding to international best practices. As a consequence of this positive review, Alstom was awarded a specific certificate on 12 March 2009, granted for two years.

April 2009

Appointment of the Transport Compliance Officer, an Argentinian tax prosecutor.

Launching of a Due Diligence Review Committee to enable the Ethics & Compliance department to take a position on the Due Diligence of a business advisor through an objection or non-objection process. Unanimity among the participants is requested to take a position.

June 2009

The Rules and Procedures for Dealing with Sales Consultants is fully updated.

A dedicated Ethics & Compliance section is made available on the Alstom Intranet, Altair

October 2009

The Letter of Mission of the SVP Ethics & Compliance is issued.

December 2009

Decision of the Executive Committee to manage the “payment and control” companies to be created in France from the Corporate Headquarters.

February 2010

Launch of the appointment of Ethics & Compliance Ambassadors,

Issue of four new Ethics & Compliance Group Instructions relating to Gifts & Hospitality, Political Contributions, Charitable Contributions and Sponsorship.

March 2010

Release of the updated version of the Code of Ethics: distribution of the booklet available in 21 languages to all employees with a print run of more than 130,000 copies,

Deployment of the e-Ethics module: mandatory for all 35,000 Managers and Professionals of the Group.

Appointment of the Alstom Integrity Programme Development Compliance Officer.

May 2010

Decision to renew the ETHIC Intelligence certification in March 2011,

Kick-Off of the Ethics & Compliance Ambassadors community.

June 2010

20,000 new employees join from Grid and receive the Code of Ethics,

The SVP Ethics & Compliance adheres to the IBE (Institute of Business Ethics – UK).

September 2010

The Board of Directors decides the creation of a new committee, the Ethics, Compliance and Sustainability (EC&S) Committee consisting of 3 independent directors of the Board. The SVP Ethics & Compliance is the secretary of the EC&S Committee for the E&C element.

Approximately 90% of the Managers &Professionals have completed the e-Ethics module

November 2010

Launch of the Ethics communication campaign. A poster translated into 10 languages is displayed on all sites

A section dedicated to Ethics is available on Alstom’s internet website

December 2010

Launch of the new Group Instruction for dealing with consulting companies

Alstom partners with the Ethos Institute in Brazil, and sponsors of its “Pact for Integrity and against corruption”

January 2011

Launch of the ETHIC Intelligence certification process for renewing the certification of the procedure for dealing with sales and marketing consultants in Power and Transport and obtaining the certification of the procedure for dealing with sales intermediaries in Grid.

February 2011

Appointment of the Grid Compliance Officer, an ex-investigator from the Serious Fraud Office.

March 2011

Launch of the Group Instruction for managing conflicts of interest

April 2011

Award of the ETHIC Intelligence renewed certificate for the procedure for dealing with Business Advisors in Power and Transport.

Alstom joins The Centre for Business Ethics and Corporate Governance in Russia.

May 2011

Award of the ETHIC Intelligence certificate for the procedure for dealing with sales intermediaries in Grid.

Launching of the process for obtaining the certification of the Alstom Integrity Programme as a whole.

June 2011

Centralisation payments to Business Advisors are no longer undertaken in the UK and in Switzerland but through Companies registered in France where Alstom has its headquarters.

September 2011

The positioning of Ethics & Compliance function is reviewed in the framework of the new organisation of the Group. The SVP E&C directly reports to the Group General Counsel, with a direct access to the Chairman and CEO and to the Ethics, Compliance and Sustainability Committee of the Board.

Award of the ETHIC Intelligence Certificate for the Alstom Integrity Programme.

50 new E&C Ambassadors are appointed.

November 2011

A new e-learning programme called Sourcing and Procurement Compliance is launched. It is made of 2 modules focusing on the prevention of corruption, of breaches of competition law and of conflicts of interest in sourcing, procurement and supply chain employees.

December 2011

The Group Instruction for Dealing with Business Advisors is fully updated.

January 2012

Launch of the Group Instruction for Dealing with Resellers.

Complete update of the E&C Section on Altair to provide more information to employees.

February 2012

Launch of the Yearly Integrity Review.

March 2012

Launch of e-Ethics in Grid introduced by a message from Grid President.

April 2012

Update of the Ethics Section on Alstom’s internet website alstom.com to provide external stakeholders with more information and give them access to E&C policies.

May 2012

Appointment of a Competition Law Director at Group level reporting to the Group General Counsel.

July 2012

August 2012

e-Ethics e-learning module is available in Arabic.

The Group Instruction 6.7 on Competition law and appendices are fully updated.

September 2012

Launch of the Business Advisor Integrity Kit to ensure Business Advisors are properly trained on prevention of corruption and on our process.

October 2012

Appointment of a full-time Compliance Officer in the USA.

Appointment of a trainee to support the project “Alstom Integrity Training Programme”, which aims at creating new face-to-face training modules for exposed employees and the update of the e-learning module on Prevention of Corruption.

February 2013

Appointment of a Compliance Officer in Germany. In addition, it was decided to give a role of part-time Country Compliance Officer to two Legal Counsels in the UK and Mexico.

April 2013

Appointment of a Compliance Officer in South Africa, senior Legal Counsel in addition to his Legal role.

Update of the Group Instruction for Acquisitions & Disposals e-Book 5.26

May 2013

Launching of Group Instruction for Preventing Corruption in Joint Venture and Consortium e-Book 2.9

June 2013

Update of Group Instruction for Dealing with Business Advisors e-Book 2.4

Appointment of a Compliance Officer in Russia and a Compliance Officer for Training and Coordination

The level of cooperation between the enforcement authorities in France (Financial Public Prosecutor’s Office), USA (Department Of Justice), UK (Serious Fraud Office) and everywhere in the world obliges the companies to adopt a global approach in terms of Anti-corruption, Compliance with Competition Law and more generally Business Ethics.

Dealing with Third Parties represents a major risk for companies with global operation worldwide. Companies relying on Third Parties may be fully liable for the misconduct or improper payments made by such Third Parties.

Minimizing the Third Party Risks

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